As the world begins to repair and rebound from a global pandemic and economic standstill, it offers a rare opportunity for institutions that hold the potential to shape our world to re-consider a long-term vision for the type of world we want to live in.
Environmental sustainability and social equity have been growing causes of public concern in recent years, only felt more urgently now in the aftermath of the pandemic crisis. While the crisis shed a glaring light on the many social inequities embedded within the cultural framework of this country, it also inspired an even stronger desire to tackle these challenges head on, as true stories of racial and socioeconomic justice rose to the forefront of media coverage.
For nearly a century as America’s socially responsible bank, Amalgamated has advocated the importance of social, climate, and gender equality in building a more just, sustainable, and inclusive future. This has always been our vision, and we recently saw an opportunity to launch a series of products that could bring this vision closer to reality and do to it with clarity and integrity.
A Higher Calling For ESG
During the last 15 years, investor curiosity has turned into interest, then action resulting in sizable market growth towards ESG investing. However, we believe that to reach a nexus point of developing more equitable business practices, environmental stability, and economies that work for all its participants a greater level of commitment is needed across all sectors to drive change.
We view ESG as an opportunity to demonstrate a vote of confidence in organizations that are committed to a diverse value set that is more comprehensive than financial outcomes.
Accredited investors and endowments are often in need of a passive portion of their portfolios. Many apply a conventional investment strategy to that area of their portfolios, which is often the cheapest and easiest solution available. We believe that the biggest mission-driven investors need passive investment products that deliver on both mission and growth.
Amalgamated believes that we can add value by applying rigorous ESG criteria at scale. We set out to deliver a competitive product that moves these dollars into ESG investment strategies with the same index tracking and scale found in more conventional products.1
The Power of Transparency and Data
Material and transparent data are mission-critical to an informed and competitive ESG investment strategy. For this reason, when we took action towards crafting a competitive suite of ESG solutions, it was important that we seek to engage with best-in-class data providers.
We partnered with Invesco, CDP, Equileap, and JUST Capital, to create multiple proprietary screening processes for our ESG adjusted ResponsiFunds. We believe CDP, Equileap, and JUST Capital are the major data providers that would enable us to categorically and objectively evaluate companies in the domains of sustainability, gender inclusion, and social equity practices.
CDP focuses on environmental reporting with the comprehensive dataset available on corporate and city action. We expect that using this dataset will allow us to screen for the most environmentally sustainable companies and organizations in the world. Equileap provides data and insights on gender equality, allowing us to align our investment products with values of diversity and inclusion. JUST Capital measures and ranks companies based on fair and equal treatment of workers, designed to provide an overview of the top companies in America on workers’ rights and social justice issues. Through JUST Capital, we expect to be able to screen our investment products for values-aligned companies that are on the right side of social justice and progressive change.
With the combined expertise of these providers, we worked together with Invesco, one of the world’s largest independent investment firms, to design and provide a suite of six ESG investment products that we believe addresses a relevant and evergreen set of issues areas for our clients. As far as ESG investments go, ResponsiFunds are designed to answer a specific need we identified in the market and we believe it is unmatched in its potential for real impact and change.
For more information about these six ResponsiFunds products, head to our ResponsiFunds webpage and see which option is best aligned with your business objectives. This could be your first step towards building a better future.
1 No representation is made that any of the investments described herein will or are likely to achieve their investment objectives. Future portfolio holdings are limited only by the offering documents; therefore, this information should not be construed as a representation of the portfolio’s likely holdings and should not form the basis of an investment decision. The information contained herein is provided for illustration and discussion purposes only and is not intended to be, nor should it be construed or used as an offer to sell, or a solicitation of any offer to buy, an interest in any of the funds or accounts which may only be made by means of confidential offering documents.